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Slovenia Business Week no. 31: Government Adopts Programme to Encourage FDI

The annual inflow of greenfield investments is expected to increase by an average of 1 to 1.5% of GDP and provide between 1,000 and 1,500 new jobs

The government has adopted a 2005-2009 programme to encourage foreign direct investment (FDI). The annual inflow of greenfield investments is expected to increase by an average of 1 to 1.5% of GDP and provide between 1,000 and 1,500 new jobs.

The government also debated a programme encouraging internationalisation of companies, but suspended the debate. It is expected to adopt the programme by 20 August, Economics Minister Andrej Vizjak told the press after the session on Thursday, 28 July.

The FDI promotion programme is to ensure at least one high-tech greenfield investment and at least three greenfield investments in the service sector.

The guidelines set therein are according to the government an important signal to potential foreign investors that Slovenia is keen on FDI and is prepared to create an attractive business environment for them.

The average annual FDI inflow in the transition period was only 2% of the GDP. Slovenia lags behind other comparable European countries also in terms of other FDI indicators, the government says.

Although the country has recorded an increase in foreign investors' interest in the period ahead and after EU accession, it has still not made a breakthrough when it comes to the impact of foreign investments on economic growth.

Source: Slovene Press Agency STA

Author: STA